"The UK's private sector spent much of the autumn effectively "in limbo", delaying investment and hiring decisions amid weeks of swirling Budget speculation that business leaders say left them bruised and uncertain about the government's intentions. The latest monthly survey from the Confederation of British Industry (CBI) reveals that firms sharply downgraded expectations for activity in the months ahead. The composite measure for anticipated private-sector activity fell to -27 in November,"
"CBI deputy chief economist Alpesh Paleja said the deterioration in confidence was closely linked to weeks of speculation about the Chancellor's plans. "Growth expectations weakened in November, some of which may be down to jitters ahead of last week's Budget," he said. "Businesses tell us that much of the month passed in limbo, with big discretionary spending and investment on hold.""
UK private-sector firms delayed investment and hiring through much of the autumn amid intense Budget speculation. The CBI's composite measure for anticipated private-sector activity fell to -27 in November from -20 in the prior two months, signalling a widespread pullback in decision-making. Private-sector output dropped at its fastest pace since August 2020, with every major sub-sector registering declines. Firms reported holding off on big discretionary spending and investment. The Budget added employer costs, including new National Insurance requirements for salary sacrifice pension contributions, while £21.7bn of fiscal headroom could provide some stability. Separate polling found more than half of business leaders expect to scale back hiring.
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